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Real Estate 2021 > Vocabulary C > Flashcards

Vocabulary C Flashcards

1
Q

Capacity

A

A persons legal and mental ability to contract. Incompetency

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2
Q

Capital gains

A

Profits that is realized upon the sale of a capital asset, as defined by the IRS.

Note: capital gains taxes are either Long-term or short-term gains

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3
Q

Capital Gains Exemption

A

Income tax exemption for profits realized on non-investment, residential property.

Note: it shield a qualifying home owner from having to pay an otherwise applicable income tax on qualified profits realized from the sale of a principle residence. Single tax payer qualifies for $250,000 and married qualify for $500,000

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4
Q

Certificate of eligibility

A

Document issued to a Veteran who is eligible for a VA guaranteed loan By the Department of Veteran Affairs (VA), which establishes a limit on the amount of VA Guaranteed Loan the VA will guarantee.

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5
Q

Certificate of tittle

A

See building codes.

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6
Q

Certificate of Title

A

A title examiner’s opinions, based on a tittle search, of whether title to property is marketable (free from defects).

Note: it serves as a basis to issue title insurance, which is usually required by a mortgage company for the buyers to obtain a loan to purchase the property.

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7
Q

Chain of tittle

A

Records of historical ownership and competing interests in real estate.

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8
Q

Change

A

Economic principle influencing the amount of value, which states no physical or economic conditions remain the same forever.

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9
Q

Chattel

A

Property that is NOT real property. It is MOVABLE. It may be tangible like cars, boats, jewelry, horses and cattle or intangible like stocks, bonds notes and mortgages.

Note: examples of ones often confused for real property: trade fixtures, leases and Fructus industriales (emblements)

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10
Q

Check

A

Unit of measure, established by the government survey method. Base lines intersects with principal meridians, forming a grid of rectangles.

Note: the smaller divisions make up checks, township Squares and sections. Checks are square area that is 24 miles per side, formed within intersecting medians and base lines

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11
Q

Civil rights acts of 1866

A

Prohibits any form of discrimination based on race that restricts a person’s right to inherit, purchase, lease, sell, hold and convey real and personal property.

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12
Q

Client

A

Person, known as the principal, who has agency relationship with an agent.

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13
Q

Closing

A

Point in time where the seller tenders title to the buyer or a neutral 3rd person in exchange of the buyer’s payment for the purchase price.

Note: closing occurs 30 - 40 days

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14
Q

Closing disclosure

A

This is the designed to standardize the presentation of a settlement change and payment for buyers and sellers.

Note: RESPA and TILA requires this form. Any changes can cause a 3 day wait period

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15
Q

Cloud on tittle

A

Discrepancies in the change of title that make a past owner’s right in a property questionable.

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16
Q

Collateral

A

Money or property pledged to a lender by a borrower as security for payment of debt.

Note: mortgage lenders often require borrowers to pledge collateral to minimize risk.

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17
Q

Commercial bank

A

Banks that make loans primarily to assist commerce, esp in the are of business loans, home improvements, and short-time construction (interim financing)

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18
Q

Commercial easement in gross

A

Limited property right held by a business entity in the real estate of another. Telephone, electric and gas company right-of-ways are all examples of commercial easements in gross.

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19
Q

Commingling

A

The act of mixing or mingling personal or business funds with trust funds, which are required to be held in trust for another in a separate escrow account.

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20
Q

Commission

A

Method of compensation for agency services, which is generally determined by an agreed upon percentage of the selling price.

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21
Q

Common area

A

They are owned by individual unit owners as tenants-in-common, which means that all the unit owners enjoy unity in possession, and they are all responsible for maintenance and care.

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22
Q

Common law

A

Systems of law, with origins in England, that is recognized by American courts unless replaced by statutory law.

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23
Q

Common Source Information Company

A

Any person, firm or corporation that is a spires, complied or supplier of information regarding real estate for sale or lease and other data.

Note: multiple listing services (MLS) are common source information companies established to member firms on a fee or subscription basis.

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24
Q

Community property

A

Theory of property ownership Applicable to husband and wives in certain jurisdictions instead of dower and curtesy

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25
Q

Comparative Market Analysis (CMA)

A

Informal estimate (prediction) of market value by one who is an appraiser (real estate salesperson often perform CMAs)

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26
Q

Compensation

A

something, typically money, awarded to someone as a recompense for loss, injury, or suffering

27
Q

Competition

A

Economic principle influencing the amount of value, which states the increase or excessive profits will attract competition

28
Q

Comprehensive plane

A

Adopted by most cities and counties to guide and control long-term development of land and logic fashion, according to the overall concept or goal.

29
Q

Condominium

A

Method of ownership governed by state law, which consists of a single unit in a multi-unit real estate development.

30
Q

Condominium, Creation

A

Sate Laws govern the development, marketing, sale, ownership and management of horizontal slide of airspace. Horizontal property and condominiums acts impose several requirements on developers and owners

31
Q

Condominium instruments

A

Instruments, which must be recorded by a condominium developer in order to create a condominiums, as a master of state condominium

32
Q

Conformity

A

Economic principles influencing the amount of value, which state property will attain to the highest value of its use conforms to its surrounding neighborhood

33
Q

Consideration

A

Basic element of contract information.

Basically, it is when parties bargain with one another to exchange promises

34
Q

Construction loans (story loans)

A

Short term loans used by builders, developers and contractors to finance new constructions

35
Q

Constructive Eviction

A

Situation where a tenant vacated leased premises without liability for rental payments because the landlords action, or lack of action, renders the lease premises unattainable

36
Q

Contract

A

Legally enforceable agreement between competent parties who agree to perform, or refrain from performing, specified acts.

37
Q

Contract, breach

A

Situation where a party fails to perform as agreed upon in a contract without any recognized legal excuse

38
Q

Contract, conditions

A

Conditions or contingencies contained in a contract. It’s an event which may not be certain, but which must occur before a contract is due.

Note: they often contain the words “if, when, unless or provided”

39
Q

Contract, FORMATION

A

Contracts, whether for real estate or other matters, my be created by a formal adoption of expressed terms, or by terms which may be implied

40
Q

Contract, PERFORMANCE

A

Once a contract arises ( offer/acceptance, consideration, lack of defense) the obligation to do what was agreed upon may be controlled by additional factors.

Note: factors are: whether the contract is executory, whether the contract may be transferred or assigned to another person other than the party to agreement, and whether the contract contains various conditions or restrictions

41
Q

Contribution

A

Economic principle influencing the amount of value, which states that an improvement to real property is only worth what it contributes to the market value of a property as a whole

42
Q

Conventional loans

A

Loans which are neither insured or guaranteed by the government. They present a grater risk to lenders than government-backed loans.

Note: most require at least a 20% down payment

43
Q

Conversion

A

Situation where entrusted funds have been misappropriated (stolen), or which an escrow agent has used or allowed escrow funds to be used for personal or regular business purposes.

44
Q

Cooperatives

A

Form of property ownership governed by state law, which is composed of a single unit in a multi-unit real estate development

45
Q

Corporation

A

Business organization governed by state law, which is comprised of a single entity and a fictitious person.

Note: the corporation is a fictional person that is lowball for all debts and obligations.

46
Q

Correction Deed

A

It’s a deed that is recorded to correct a mistake in a deed to property.

Note: used to correct minor things such as improper legal description and misspelling of a name

47
Q

Cost approach

A

It’s one of three methods of appraising real property. Also known as cost depreciation approach. It’s based on land value, plus production or replacement cost of improvement, minus depreciation

48
Q

Cost approach, ESTIMATE ACCRUED DEPRECIATION

A

It’s the total loss of value of a building throughout time.

49
Q

Cost approach, ESTIMATING THE CONSTRUCTION COST

A

It requires appraisers to compute the reproduction or the replacement cost.

50
Q

Cost approach, ESTIMATING THE VALUE FOR THE LAND

A

The appraiser must use market approach to estimate the land value. The estimate is performed as if the land were vacant and available to pave placed at its highest and best use

51
Q

Counteroffer

A

An offer made in response to another offer

52
Q

Covenant

A

Unconditional and binding promise contained in a contract, deed or other instrument

53
Q

Covenant, AGAINST ENCUMBRANCES

A

Promise contained in a deed by the grantor which he guarantees that there are no encumbrances against the property, except those specifically disclosed.

54
Q

Covenant, OF FURTHER ASSURANCE

A

Promise contained in a deed by the grantor to do any further acts that may be required in the future to guarantee or perfect the title of the grantee.

55
Q

Covenant, GOOD REPIR

A

Promise in a mortgage or deed of trust, which obligates the borrower to maintain mortgage property and keep it in good repair.

56
Q

Covenant, OF QUIET ENJOYMENT

A

Promise in a deed arising from the grantor’s assistance that the grantee shall enjoy possession of the property in peace and without disturbances from hostile claimants

57
Q

Covenant, OF SEISIN

A

Assurance (promise) made by grantor of a deed to the grantee of a deed that the grantor has the degree of ownership that the grantor claims he can convey

58
Q

Covenants, OF WARRANTY FOREVER

A

Promise in a deed that forever assures the grantee possession and continuance of title.

Note: words such as “ the grantee will forever warrant the title to his premises “ generally identifies the warrant to a covenant forever.

59
Q

Covenant, TO PAY INDEBTEDNESS

A

Promise in a mortgage or Deed of Trust, which contains the borrowers promise to repay the loan according to the terms of the note

60
Q

Covenant, TO PAY INSURANCE

A

Promise to maintainer insurance coverage against damage or destruction of financed property in the amount specified by the lender, with the lender named as the beneficiary

61
Q

Covenant, TO PAY TAXES

A

Promise to pay real estate taxes and other assessments levied against property.

62
Q

Curtesy

A

The legal rights or interest recognized by some states that a spouse has in the property of his/ her husband or wife. It’s similar to dower.

63
Q

Customer

A

A person who is not in a brokerage relationship with with respect to a particular broker, but for whom a real estate agency may perform ministerial acts in real estate transactions

Real Estate 2021 (18 decks)

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